National Treasurer Rosalia De Leon said on Saturday that the Maharlika Investment Fund (MIF) would be utilized to invest in profitable infrastructure projects, reducing the need for additional government loans.
Once implemented, the MIF will allow the government to allocate its fiscal resources to other programs, including social protection initiatives for vulnerable sectors.
During the Saturday News Forum in Quezon City, De Leon emphasized that the MIF’s equity investments would alleviate the pressure to borrow funds for infrastructure projects.
The MIF is also expected to attract foreign investments as it will be directed towards the administration’s priority programs.
Under the current Marcos administration, there are approximately 194 flagship infrastructure projects amounting to P9 trillion. The initial funding for the MIF will consist of P50 billion from the Land Bank of the Philippines, P25 billion from the Development Bank of the Philippines, and P50 billion from the national government.
An additional P125 billion will come from the national government, its agencies, and government-owned and controlled corporations, excluding certain pension funds.
To support the MIF, the Bangko Sentral ng Pilipinas (BSP) will contribute 100 percent of its dividends for the first two years, while the Philippine Amusement and Gaming Corporation will provide 10 percent of its income for five years.
Finance Secretary Benjamin Diokno assured that the BSP’s contribution would not jeopardize its financial stability, as the dividends are determined by the net profit of BSP, with the national government deciding its usage.
De Leon addressed concerns about the impact on Land Bank and DBP, assuring that their contributions represent only a small percentage of their investible funds. This ensures that sufficient resources will remain available for loans in sectors such as agriculture.
She emphasized that the concept of a sovereign wealth fund and its utilization has evolved over time, and the MIF will have robust safeguards in place to prevent fraud and corruption. Internal and external auditors will oversee the fund’s use in accordance with established rules and regulations.
Department of Budget and Management Undersecretary Joselito Basilio pointed out that the Congress-approved version of the bill mandates professional management for the MIF.
